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Determining Stock Value
The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.
Stock Price Movements
Stock price movements actually begin to reflect new developments before it is generally recognized that they have taken place
The Emotional Trap in Trading
Never confuse your position with your best interest. Many traders take a position in a stock and form an emotional attachment to it. They’ll start losing money, and instead of stopping themselves out, they’ll find brand new reasons to stay in. When in doubt, get out.
Embracing Contrarian Principles
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.